State Supplement - static.kaplanlearn.com

1 Log in at to access more study SupplementProperty & Casualty Insurance MarylandImportant: Check for Updates states sometimes revise their exam content outlines unexpectedly or on short notice. To see whether there is an update for this product because of an exam change, go to and check the Insurance Licensing Blog. If there is an update, it will be clearly noted in the blog entries for this Law SupplementEffective March 31, 2015 MarylandProperty and Casualty InsuranceMD_P&C_Law 13/7/2016 3:33:35 PMAt press time, this edition contains the most complete and accurate information currently available. Owing to the nature of license examinations, however, information may have been added recently to the actual test that does not appear in this edition.

2 Please contact the publisher to verify that you have the most current publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be PROPERTY AND CASUALTY INSURANCE LAW Supplement , EFFECTIVE MARCH 31, 2015 2016 Kaplan, text of this publication, or any part thereof, may not be reproduced in any manner whatsoever without written permission from the you find imperfections or incorrect information in this product, please visit and submit an errata in March 2016 by Kaplan Financial in the United states of : 978-1-4754-3297-8MD_P& 23/8/2016 1:23:03 PMiiiContents Introduction v UNIT 1 cram Sheets 1 UNIT 2 Class notes 5 UNIT 3 Detailed Text 37 UNIT 4 Practice Exam 93MD_P&C_Law 33/7/2016 3:33.

3 35 PMMD_P&C_Law 43/7/2016 3:33:35 PMvIntroductionWhat is a State Law Supplement ?This book focuses on the State -specific statutes and regulations on the State exam content outline. In order to be fully prepared for the exam, you must understand completely both the national License Exam Manual and this is the Supplement organized?In order to make this book flexible and easy to use, we ve divided it into four sections, and are each broken into topic areas as seen AreasCram SheetsCram sheets focus on very specific details for your State . The information is presented in an easy to understand table format primarily highlighting days, dates, and dollars. General Insurance Law Property Insurance Law Casualty Insurance LawClass NotesThe class notes are meant to be a summary of the key topics in the law Supplement , and are available to all students classroom and self-study.

4 General Insurance Law Property Insurance Law Casualty Insurance LawDetailed TextThe text section is the most detailed section of the law Supplement . All topics in your State s exam content outline law and regulations section are covered. General Insurance Law Property Insurance Law Casualty Insurance LawPractice ExamsThe practice exams test your retention of the law supple-ment material. General Insurance Law Property Insurance Law Casualty Insurance LawDo I have to learn everything in this book?Not necessarily! The table below shows the sections you should study depending on the exam you are preparing ExamSections to StudyProperty and Casualty Insurance General (All Lines), Property, and Casualty InsuranceProperty Insurance OnlyGeneral (All Lines), and Property Insurance onlyCasualty Insurance OnlyGeneral (All Lines), and Casualty Insurance onlyMD_P&C_Law 53/7/2016 3:33:35 PMviLaw SupplementHow should I study this information?

5 Below is a best study practice for the law and regulations section of your Law Supplement cram Sheet: Your exam will probably ask about specific fine amounts or days notice requirements ( , changing your address). 2. Law Supplement Class notes : Reading the class notes exposes students to the majority of topics covered in the law Supplement . 3. Law Supplement Detailed Text: Read this text for more in-depth descriptions of the State s insurance laws and Law Supplement Practice Exams: There are two law Supplement practice exams. One is in the back of the law Supplement . State specific law questions can also be found in the InsurancePro QBank at In your final preparation for the exam take the time to again review the cram sheet and class notes .

6 Use them as a last-minute refresher of the most important law and regulation testable 63/7/2016 3:33:35 PMs e c t i o n11s e c t i o n1 cram SheetsHOW TO USE: In your final preparations for your insurance exam use this cram sheet to memorize key days, dates, and dollars. A suggested tech-nique is to cover the left hand column; read the right hand column; then uncover the left hand column to reveal the correct 13/7/2016 3:33:35 PM2 Law SupplementMARYLAND LAWS AND REGULATIONS PERTINENT TO PROPERTY AND CASUALTY INSURANCEC ommissioner of Insurance4 yearsThe length of the Commissioner s term 5 yearsThe Commissioner must conduct an examination of every domestic insurer at least once every ___ years30 days The Commissioner must give ___ days advanced notice of a hearing$100,000$500$100,000 Penalties Maximum fine for willful violation of State laws Maximum fines for suspension/revocation of license Fine for each willful violation of unfair trade practices lawLicensing Age 18 Minimum age to obtain producer license2 yearsProducer licenses are issued for a term of ___ years1 yearExpired licenses may be reinstated within ___ year(s)

7 Of the license renewal date15 monthsLength of temporary insurance producer license without requiring an examination, if a licensed producer dies or becomes disabled$10,0002 yearsSurplus Lines AgentAmount of bond filed with the CommissionerLicense renews every ___ years30 days30 days10 daysReporting of ActionsProducer must report a change of legal name or address within ___ daysCriminal acts must be reported within ___ daysChanges of a business entity s designated insurance producer must be reported within ___ days30 days30 days15 daysAgency Appointment The insurer must file a notice of appointment in his producer register and send docu-ments to the producer within ___ daysAgency Appointment TerminationCommissioner must be notified within ___ days after termination dateProducer must receive notice within ___ days after notifying Commissioner24 hours3 hours2 hoursContinuing Education (CE)

8 Total CE hours required every two yearsIncludes ___ hours of ethics CECE hours required to sell flood insuranceMaryland Property/Casualty Insurance Guaranty CorporationFull amount$300,000 The Corporation s liability is as follows: Workers compensation claims Maximum amount per claim (other than workers compensation)ADDITIONAL STATUTES, RULES, AND REGULATIONS PERTINENT TO PROPERTY AND CASUALTY INSURANCE ONLY30 daysApproval of Rates and FormsWaiting period before rate filings become effective45 days15 days BindersValid for up to ___ daysCancellation of a binder requires ___ days advance noticeMD_P&C_Law 23/7/2016 3:33:35 PM3 Law SupplementUnfair Trade Practices$2,50045 days$125,000 Unfair Claim Settlement PracticesFines up to $___ per violationInsurer must provide an explanation to the insured if a claim investigation cannot be completed within ___ daysPenalties for first party claim violations up to $___ per violationCancellation/Nonrenewal10 days45 days10 days45 daysPersonal lines policies: Notice of cancellation or nonrenewal ___ days in advance for cancellation (nonpayment of premium) ___ days in advance for cancellation or nonrenewal for any other reasonCommercial lines policies.

9 Notice of cancellation or nonrenewal ___ days in advance for cancellation (nonpayment of premium) ___ days in advance for cancellation or nonrenewal for any other reason45 daysInsurer must send a renewal notice ___ days prior to expiration (renewal) dateFraud$10,00015 years$50,000 Fraudulent Insurance ActsMaximum fine per violation is the greater of three times the value of the claim or $___Fraud and False StatementsImprisonment up to ___ years for jeopardizing safety and soundness of insurerPenalty up to $___ per violationMARYLAND LAWS, RULES, AND REGULATIONS PERTINENT TO PROPERTY INSURANCE ONLY15 daysNotice of cancellation must be sent to the mortgagee ___ days in advance if the policy has been in force less than 45 daysMARYLAND LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY INSURANCE ONLYC ancellation and Nonrenewal of Private Passenger Motor Vehicle Liability Insurance10 days 45 days ___ days advance notice for cancellation (nonpayment of premium)

10 ___ days advance notice for cancellation or nonrenewal for any other reason$30,000$60,000$15,000 Minimum Liability Limits Bodily injury or death to any one person per accident Bodily injury or death per accident Property damage per accident$30,000$60,000 Uninsured/Underinsured Motorist$___ bodily injury or death per person per accident$___ bodily injury or death per accident$2,5003 years85%Personal Injury Protection (PIP) BenefitsMinimum PIP benefit Expenses must be incurred within this time framePercentage of income loss (for up to three years)12 months30 daysAuto ClaimsDeadline for submitting initial claims to insurerPayment of covered claims upon receiving proof of claimMD_P&C_Law 33/7/2016 3:33:35 PM4 Law SupplementWorkers Compensationtwo-thirdsDisability BenefitsPermanent total disability includes ___ of average weekly wage3-day14 daysWaiting Period for Disability Benefits Temporary total disability benefit payments begin after a __-day waiting period If the disability persists more than __ days, the employee is entitled to retroactive disability benefits dating to the first day of disability $7,000 Funeral expense up to $___30 days Insurer must provide ___ days notice of cancellation to the employer2 yearsTime limit for filing a claimMD_P&C_Law 43/7/2016 3:33:35 PMs e c t i o n52s e c t i o n5 Class NotesHOW TO USE.